Al Khaliji Q1 net profit up 5.3pc to $46.5m

DOHA, April 22, 2018

Qatar-based Al Khalij Commercial Bank (al khaliji) has posted a net profit of QR169.6 million ($46.5 million) for the first quarter of the year, marking an increase of 5.3 per cent over its financial results for the same period of last year.

Sheikh Hamad Bin Faisal Bin Thani Al Thani, chairman and managing director stated: "al khaliji is starting the year 2018 with a solid financial performance. We are in line with our Qatar-centric strategy and these results depict the Bank's sustained positive performance quarter after quarter. This financial strength will allow us to continue fulfilling our strategic objectives for 2018 and beyond.”

Fahad Al Khalifa, al khaliji’s Group chief executive officer said: “al khaliji has reported a strong set of results for the three months ended 31 March 2018, led by growth in our operating income. The key contributor to the increased operating income was net interest income, which we grew by 5.7 per cent, compared to Q1 2017. This was a key goal in 2017 and remains so into 2018. We have also reported healthy growth in non-interest income in line with our strategy of maintaining a diversified revenue base.”

“We have generated top line growth by de-leveraging non-core and low yielding assets, effectively managing our funding base. As we grew top line revenues, we have continued to maintain focus on operating costs, which are lower by 3 per cent compared to Q1 2017 resulting in an improved efficiency ratio of 26 per cent which is one of the best in Qatar.

“Risk management continues to remain at the heart of our operating philosophy. Our proactive approach in managing our loan portfolio, coupled with a conservative approach to provisioning has led to a reduction in net impairments compared to the same period last year,” he added.

“Notwithstanding the introduction of IFRS 9 effective January 2018 net impairment charges were lower by 6 per cent compared to the first quarter last year.

Qatar’s economy is solid, we have commenced our journey in 2018 with renewed optimism and will continue to support our clients by working closely with them and further strengthen our franchise in Qatar; we remain confident that this will translate into improved financial metrics,” Al Khalifa concluded. – TradeArabia News Service